On January 1, 2017, AMI Corporation purchased the non-cash net assets of Bridgeport Ltd. for $8,831,700. Following is the statement of financial position of Bridgeport Ltd. from the company's year-end the previous day:

Bridgeport Ltd. Statement of Financial Position As at December 31, 2016
Cash		$690,000
Accounts receivable		559,000
Inventory		2,590,000
Property, plant, and equipment (net)		2,160,000
Land		2,620,000
		$8,619,000
Accounts payable		$379,000
Common shares		2,610,000
Retained earnings		5,630,000
		$8,619,000

As part of the negotiations, AMI and Bridgeport agreed on the following fair values for the items on Bridgeport's statement of financial position:

Accounts receivable		$557,500
Inventory		2,380,000
Property, plant, and equipment		1,955,000
Land		4,070,000
Accounts payable		229,800

Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Bridgeport Ltd, assuming AMI paid cash for the net assets

Answer rating: 100% (QA)

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